Blockchain presentation at International Investigators Conference, Seoul, Korea, October 2018

1. Follow the Money:
Blockchain Technology for Fraud Prevention

2. Today’s Discussion
• Introduction to Blockchain
Blockchain Basics – BBC
• Fraud Risks in the Humanitarian Sector
• Expanding Blockchain Uses
• WFP’s Story – Building Blocks in Jordan
• OLAF Presentation on Blockchain Uses
• Q & A

3. Blockchain Benefits
• Ability for individuals to create self-soverign digital identities
to improve verification
• Cost reduction through removing transaction costs
• Sychronization of databases to block double-spending
• Fraud prevention through distribution of ledgers
• Speed of validation and delivery of benefits
• Transparency of financial records and traceability of funds
• Impractical to successfully delete or alter record
• Privacy – private data can be tokenized and not shared
• Security – strong encryption, strong private keys

4. Current Blockchain Challenges
• Public blockchains can be slow due to the consensus
calculations
• Current public blockchains are energy and resource
intensive and can be slow
• Crypto-currencies (bitcoin) are volatile and not always legally
recognized
• Blockchains require internet and device access (cellphone or
PC)
• Private keys (long passwords) cannot be reset and if stolen,
your account access and contents are gone
• GDPR compliance as pubic blockchains can’t forget or
delete data

5. Blockchain Jargon
• Building blocks
• Private and public chains
• Distributed peer-to-peer ledgers
• Immutable and non-reversible transactions
• Cryptographic hash and hash of previous block
• Genesis block
• Proof of authority and proof of work
• Permissions
• Consensus algorithms
• Private keys
• Smart contracts
• Crypto-currency

6. Fraud Risks in the Humanitarian Sector
• Ghost or unauthorized beneficiaries
• Unauthorized or inaccuarate beneficiary aid distribution
• Transaction tampering
• Fraudulent transactions not detected
• Privacy breaches
• Security breaches

7. How Blockchain Technology Addresses
Fraud Risks
Type of Fraud Risk Type of Blockchain Control Effectiveness of
Control
Unauthorized Beneficiaries Beneficiary Validation - Biometrics Moderate
Unauthorized benefit distribution Authorization of benefit distributed Moderate
Transaction tampering Transactions uneditable and timestamped Strong
Fraudulent transactions not detected Blockchain distributed ledger concensus Strong
Privacy breaches Blockchain permissioning Strong
Security breaches Private keys / Building blocks (partitioning) Strong

8. Where Fraud Risks Remain
Anywhere humans still interact with the transaction
• Fraud in the initiation of a beneficiary (assumed identity, fraudulent
documents at registration, fraud in collection of biometrics)
• Fraud in initiating or authorizing benefits
• Inability to correct a transaction means a fraudulently initiated transaction
lives on forever unless all blockchain participants agree to change
• Unforgiving if the private key is forgotten or misplaced as there is currently no
reset capability

9. Expanding Blockchain Uses
Common use cases for blockchain technology
Humanitarian Aid Distribution – A beneficiary receives aid from
multiple agencies. Uses one digital identity, accessible across
agencies for verification.
Supply Chain Management – Better controls over counterfeiting of
products, product substitution, theft prevention
Other Uses – Voting, healthcare benefits, charitable donations and
crowd funding, equity transactions, real estate transactions, loyalty
programs, commissions and royalties

10. Expanding Blockchain Uses

11. WFP’s Story – Building Blocks in Jordan
Timeline
Proof of Concept – 100 beneficiaries in Pakistan in Jan 2017
Pilot – 10,000 Syrian refugees in Jordan in May 2017
Expanded Pilot – 100,000 refugees in Jan 2018. 500,000 refugees by
Dec 2018
Business Model
Refugee wallets created on blockchain. Blockchain used to load
entitlements, authorize transactions, and reconcile cash-based transfer
accounts. Retailers are paid for beneficiary purchases directly from
blockchain records.

12. Q & A

13. Contact Information:
Kiko Harvey | Inspector General | United Nations |
World Food Programme
patriciakiko.harvey@wfp.org
Dominik Schnichels | Director | European Commission
‘ Dominik.Schnichels@ec.europe.eu
Ian Tellam | Director | ADAPTIFY
ian.tellam@adaptify.org